Indian Fintech Paytm wins in a major organizational battle days after the main investor exit

The Indian Fintech giant PayTM has received a long-awaited approval from the country’s central bank to work as an online traders ’payment provider-just days after one of its Chinese investors selling its entire share-which represents a major organizational breakthrough after that Months of setbacks and scrutiny.

On Tuesday, the Indian Reserve Bank (RBI) granted “the principle” approval to the PayTM payment unit to work as an online payment complex, as the mother company One97 said there. presentation (PDF) to Indian stock exchanges. The approval comes more than two years after Fintech was headquartered Initially License in November 2022 Because of the lack of compliance With India’s bases on receiving investments from countries that share the wild borders.

Without licensing, Paytm was prevented from new online merchants. At that time, the company said the restriction “has no material impact” on its business or revenues. However, at his annual general meeting last September, the founder and director of communications at One97, Viga Cquarer Sharma Mention his intention To re -apply the payment complex license.

Approval also comes more than a year after RBI Paytm payment bank banned Accepting fresh deposits and enabling credit transactions. Paytm has succeeded in this effect Transfer the gears quickly Partnership with Axis, HDFC, Bank of India and Yes Bank to make it work as consumers payment service providers and merchants participating in online transactions and Autopay delegations.

With the new license, Paytm can It works as a service provider For online merchants, they enable them to accept a set of payment methods, including cards, net banking, and unified government -backed payment payments (UPI). Approval also raises the trader’s restrictions on the Internet on the plane imposed by the central bank in 2022.

Approval comes after only one week The Chinese ant Paytm by selling its 5.8 % direct share in One97 Communications For $ 454 million Through block deals. This follows a former exit in 2023, when it is Ant Financial He sold a 10.3 % stake – at a value of $ 628 million -To Sharma in the non -deficiency deal.

Paytm must conduct a “system scrutiny”, including a review of cybersecurity and submit its report to the Indian Reserve Bank within six months. If you fail to do so, the approval will invalidate, according to the RBI message attached to the company’s offering. The license is also limited to online payment services and does not extend beyond this range.

The latest development will help control most of its value chain, from the uninterested audio boxes to the online payment portal, and reduce its dependence on other bank partners.

Paytm is currently The third most used Upi payment platformBehind Walmart and Google Pay. Fintech made 6.9 % of a total of 18.4 billion UPI transactions in June and 5.6 % of the value of the transaction, for the National Payments Corporation in India (NPCI). In total, PayTM processed 1.27 billion UPI transactions worth $ 1.34 trillion (about $ 15 billion).

Although Paytm Trails Phone and Google Pay in the UPI market – with more than 82 % of all UPI transactions in June – the company provides a wide range of companies and services to attract both consumers and merchants. These include merchant payment solutions in non -communication mode with integrated devices, programs and service classes, as well as increasing credit and lending work.

Paytm I mentioned (PDF) net income of $ 1.23 billion (about 14 million dollars) for the first quarter of its fiscal year 2026, which ends in June – turned from the loss during the same period last year. The results won the expectations, as analysts expected a loss of $ 1.27 billion (about 14.5 million dollars). Revenue increased by 28 % year on an annual basis to $ 224 million, while the company’s contribution margin improved to 60 %, up from 50 % last year.

In addition to its last financial growth, PayTM shares increased by 13.25 % year on year in 2025, indicating that the company started restoring market confidence after more than a year of regulatory setbacks. The arrow was closed at $ 1,118.50 (about $ 13) on Wednesday, before announcing the regulatory approval directly.